Seeking Advice

For just about anything you want to get off your chest about credit cards.
8 posts
liberate
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Location: Iowa

Seeking Advice

Postby liberate » Wed Dec 04, 2013 10:28 am

Hello everyone. I have a couple of questions, but first I'll break down my cards.

1. Discover More (just called and changed to It) -- $500 limit
2. AmEx True Earnings (with Costco) -- $5000 limit
3. Best Buy retail card -- $3000 limit

I got the BB card for a large purchase, but now I've read several reviews on how bad it can be. I'll easily be able to pay off the purchase though, so I'm not as worried about it.

Now, I'm starting to think getting the BB card was a mistake. Ideally, I'd like to stick with only the Discover and AmEx cards. I'd only have two cards that would "age" and hopefully improve my score.

That said, my goal is to increase the credit line of the Discover. When I applied, I only had a part time job during school. I now work full time, so I'm sure I could get an increased line. I know an increased line is beneficial in the long run, but asking for one can be hurtful.

This year, I had some fraud scares that resulted in alerts and credit checks by me. Additionally, I've now just applied for the BB store card, so I believe my credit reports have been checked a couple times this year. I'm considering paying off the BB card now and canceling it, but I'm not sure if that would hurt me since I've only just applied for it and received it in the mail. Then, when my balances are all zero, I hope to get the increased line on the Discover and never get another card again.

Any advice for how to approach this? Can I pay off the BB card now, cancel it, and then get an increased line on the Discover? Will that hurt me too much?

Thanks, and I do realize I should have considered this more before acting. Lesson learned.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...


daniel2304
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Postby daniel2304 » Wed Dec 04, 2013 1:40 pm

I don't think asking for a credit limit increase can hurt too much. It's considered as a soft pull and most credit card issuers will be looking at your payment history with them, change of income and your utilization. Citibank don't even pull out my credit report to offer me a jump from $1,200 to 2,400. I had their card for 11 months now.

I don't know much about best buy retail credit cards but in my belief, all store-offered retail cards are not worthy even in terms of earning cash back. Their cash back might be redeemed limited and it wouldn't make sense to only use points or cash back at 1 store, even it offers a wide range of electronic products as Best Buy.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

takeshi
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Postby takeshi » Wed Dec 04, 2013 2:07 pm

You've already taken the hit for the inquiry and the hit to AAoA. Closing it will increase your utilization as will lose the available credit on that account. Closing the BB card doesn't guarantee that you'll get a CLI on Discover.

liberate wrote:I know an increased line is beneficial in the long run, but asking for one can be hurtful.

It costs a hard pull unless Discover's one of the ones that softs for CLI's. No big deal, really. The negative impact from a hard pull falls off relatively quickly.

Search around and read up on the AmEx 3X CLI.

MemberSince99
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Postby MemberSince99 » Wed Dec 04, 2013 2:59 pm

You can pay it off or cancel it but that has nothing to do with your limit on Discover, though paying it off should give you lower utilization and your best shot at a CLI. But Discover is known to be tightwads. You can call and ask. Good luck.

liberate
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Postby liberate » Wed Dec 04, 2013 5:14 pm

Just realized how badly I worded that. I realize the CLI with Discover and the BB card are relatively unrelated. My concern was whether asking for the CLI and canceling the BB card would hurt my FICO too much.

Regardless, I called and asked Discover about the CLI. They did do a hard pull but increased my limit from $500 to $5,000. I believe I was overthinking it earlier. I won't be buying a house or car in the near future. This is more just planning for the future, and I think my current cards and credit line are solid for a graduate student.

Still conflicted about the BB card. I guess I could keep it for awhile after I pay it off and just use it sparingly. I have the self control, so it may be better to do that rather than cancel it.

Thanks for the replies. I did read about the AmEx 3x CLI, and it seems pretty solid since it's a soft pull. I've had the card for 7 months now. My gut instinct is to wait a little longer and have everything paid off before I request it to maximize my chances, but I'm not sure if it works that way.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

samhradh
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Postby samhradh » Thu Dec 05, 2013 1:55 am

If your goal right now is to work on building credit, then keep all three cards.

Put a soda or pack of gum on the BB card every month if you want but you don't have to. It will help your credit score to keep it open. No sense in cancelling it just because the terms aren't great. (You should always pay in full, on-time anyway so then APR rates do not apply).

Definitely request the AmEx CLI. Just do it online. No need to wait, in my opinion.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

MemberSince99
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Postby MemberSince99 » Thu Dec 05, 2013 6:11 am

You did well with that Discover tends to be stingy. I'd take a hard pull to get 10X my current limit, or a lot less than that.

liberate
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Location: Iowa

Postby liberate » Wed Dec 11, 2013 10:21 am

Thanks again for the advice. I want to post a follow-up question, but first I'll update my cards from the first post:

1. Discover It -- $5k
2. AmEx True Earnings (with Costco) -- $5k
3. Best Buy store cc -- $3k

As I mentioned before, my plan is to build credit. I'm a graduate student (income ~$24k/year), so I have about 5 years before I finish school and might actually need a good credit for something.

That said, are the cards and credit lines that I have appropriate for building credit? Is $13k total enough? I'm hesitant to even think about getting another card, but I see people on here that have much higher total credit line than mine.

Thanks.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...



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